Where next for nutricosmetics?

IT WAS some years ago now that nutricosmetics were initially heralded as the next direction of personal care. By simultaneously addressing the consumer need for nutrition and appearance enhancement, industry players could be forgiven for presuming that they had come across a license to print money.

Fast forward to the present day, however, and such "beauty foods and drinks" have yet to garner widespread consumer approval. Many are unconvinced by such products, whilst many more remain unaware of their existence. This is not to say that the concept has been a failure - far from it; sales growth remains impressive, and more products are hitting the shelves every week. Yet manufacturers must be frustrated that such a promising category has not realised its potential and become a global phenomenon.

On the face of things, the demand for such products is there. Undoubtedly the visual culture in contemporary society places consumers under extreme amounts of pressure to look their best. When asked by Datamonitor in July 2010 whether "physically attractive people have greater opportunities in life", almost two-thirds (64%) of respondents (across 20 global markets) agreed, whilst just 9% actively disagreed. This represents a sharp increase from when the same question was asked in 2009, where 55% agreed and 14% disagreed. The implication here is clear: consumers feel that appearance truly matters.

Unsurprisingly, this has manifested itself on consumer attitudes and behaviour. In 2010, 48% of global consumers told Datamonitor that they pay a "high" or "very high" amount of attention to their physical attractiveness/appearance. Korean and Middle Eastern consumers reported being the most attentive, whilst US responses regarding attentiveness were 3% below the global average. Perhaps unsurprisingly, females were more attentive than males, although the imbalance in attitudes is shortening all the time.

Nutricosmetics potentially offer something that personal care products cannot - namely sensory enjoyment. Whilst consumers may enjoy the scent of a personal care product, or how it feels against their skin, these products lack the ability to make consumers derive pleasure from taste. Much like functional foods, which impart benefits in the form of stronger bones or immune systems, nutricosmetics can give consumers the feeling that their consumption is actively improving them in some way. If a product can use ingredients that deliver on taste as well as benefits, consumers regard them as a desirable treat, eliminating any guilt that comes with consumption. It also forms a very important part of the value equation.

Value is crucial to the development of any category because it is the central pivot around which all purchase decisions operate. Consumers are not so much price-conscious as they are value-conscious - if what a product delivers exceeds expectations then it holds appeal that the cheapest product very rarely can match. In the personal care industry this is especially important because consumers purchase products based on the quality of results. They therefore believe it to be a false economy buying the cheapest products if they do not perceive them to be effective. This is chiefly the reason why private labels have more difficulty gaining market penetration here despite them performing strongly in the food and beverage industries.

Credibility Issues

So, whilst it is apparent that consumers are preoccupied with appearances, the disconnect lies in the transition to believing in the efficacy of beauty foods. Results from Datamonitor's July 2010 global consumer survey reveal that there is a certain familiarity with the association between diet and appearance. Indeed, 68% of the 15,000+ respondents agreed that they are "conscious ofNike